Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Roxxon Inc. is considering a project that will have fixed costs of $15,000,000. Its sale price will be $41.50 per unit, and it will have
Roxxon Inc. is considering a project that will have fixed costs of $15,000,000. Its sale price will be $41.50 per unit, and it will have a variable cost per unit of $10.75. Therefore, Roxxon Inc. has to sell 487,805 units to break even on this project Roxxon Inc.'s marketing and sales director doesn't think that the firm's market is big enough for the firm to break even. In fact, she believes that the firm will be able to sell only about 150,000 units. However, she also thinks that the demand for Roxxon Inc.'s product is relatively inelastic, so the firm can increase the sales price. Assuming that the firm can sell 150,000 units, what price must it set to break even? $105.21 $132.90 $110.75 $121.83
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started